Selling more books vs maximizing profits – are Amazon’s decisions in sync with author preferences ?

An article in the New York Times (July 5, 2013) describes discount reductions on books by Amazon as the company’s share of book sales grows to 25% of the market. Several authors and small publishers claim that the lowered discounts mean fewer units sold and thus a smaller reach of the product. They believe that Amazon’s move closer to a monopoly now gets them to switch strategies from heavy discounting to drive out competitors to maximizing profit from sales of fewer units. How should the competing priorities of the author and Amazon regarding the impact of number of books sold be reconciled ? Will increased prices by Amazon encourage direct sales through other ecommerce channels by book publishers ? Will the increased use of e-books minimize the physical book supply chains ?

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About aviyer2010

Professor
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